Following the Trump administration’s announcement to curb diversity, equity, and inclusion practices, Fordham Law Professor Atinuke Adediran—who researches corporate disclosures on diversity—spoke with Bloomberg Law about the role of 10-K financial statements moving forward.
Companies that have pointed to diversity programs for years as a crux of their business are unlikely to end that refrain, said Atinuke Adediran, an associate professor at Fordham University School of Law who researches corporate disclosures on diversity.
“It’s really hard for you to just erase everything you’ve been saying for the past three years and just get rid of it—I think that’s very bizarre,” she said.
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Even before recent changes in DEI priorities, companies were signaling to investors that keeping those programs could be risky. A raft of companies disclosed DEI as a “risk factor” in their 10-K filings last year, flagging that they could face lawsuits or dings to their reputations.
The 10-K reports, often published around February, are required for public companies so that shareholders can scour through them for financially pertinent information as well as glimpses into a company’s culture and priorities. Businesses filing their 10-Ks now likely had them mostly wrapped up by the end of last year or early this year, but they could have changed some of the language if they felt it was necessary in the past week, Adediran said.
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While it’s unclear how most companies will address diversity in their 10-Ks this year, every business will be considering their unique customers, employees, and shareholders as they do so, Adediran said.
Read “Netflix, McCormick Uphold DEI to Investors After Trump Directive” in Bloomberg Law.
